Critical Success Factors

Critical success factors (CSF) are the key areas, which must be performed at the highest possible
level of excellence if organizations want succeed in the particular industry. They vary between
different industries or even strategic groups and include both internal and external factors. In our
example, we have included 11 CSF, which is usually not enough. The more critical success factors
are included the more robust and accurate the analysis is. The following list provides some of the
general CSF, but the list is not definite and you should include industry specific factors in your
matrix:
Market Share
Product Quality
Clear strategic direction
Customer service
Customer loyalty
Brand reputation
Customer satisfaction
Financial position
Cash reserves
Profit margin
Inventory turnover
Employee retention
Income per employee
Innovations per employee
Cost per employee
R&D spending
Strong patent portfolio
New patents per year
Revenue per new product
Successful new
introductions
Union relations
Skilled workforce
Location of facilities
Production capacity
Added product features
Price competitiveness
Low cost structure
Variety of products
Complementary products
Level of product integration
Successful product promotions
Superior marketing capabilities
Superior advertising capabilities
Superior IT capabilities
Size of advertising budget
Effectiveness of sales
distribution
Employee satisfaction
Effective planning and
budgeting
Variety of distribution channels
Power over distributors
Power over suppliers
Access to key suppliers
Efficient supply chain
Supply chain integration
On time delivery
Strong online presence
Effective social media
management
Experience and skills
in e-commerce
Management qualification
and experience
Innovation in products
and
services
Innovative culture
Efficient production
Lean production system
Strong supplier network
Strong distribution
network
Product design
Level of vertical
integration
Effective corporate social
responsibility programs
Sales per outlet
Parent company support




Opportunities Threats
1. Market growth for the main firm's product
2. Growing demand for renewable energy
3. New technology, that would drive
production costs by 20% is in
development
4. Our country accession to EU
5. Changing customer habits
6. Disposable income level will increase
7. Government's incentives for 'specific'
industry
8. Economy is expected to grow by 4% next
year
9. Growing number of people buying online
10. Interest rates falling to 1%
1. Corporate tax may increase from 20% to
22% in 2013
2. Rising pay levels
3. Rising raw material prices
4. Intense competition
5. Market is expected to grow by only 1%
next year indicating market saturation
6. Increasing fuel prices
7. Aging population
8. Stricter laws regulating environment
pollution
9. Lawsuits against the company
10. Currency fluctuations

SWOT analysis of Company 'A' Importance Rating Score
Strengths
1. Second most valuable brand in the world
2. Diversified income
3. Strong patents portfolio (15,000 patents)
4. Investments in R&D reaching 4 billion a year
5. Competent in mergers & acquisitions
6. Have an access to cheap cash reserves
7. Effective corporate social responsibility (CSR) projects
8. Localized products
9. Highly skilled workforce
10. Economies of scale/economies of scope
0.03
0.01
0.15
0.10
0.05
0.02
0.03
0.01
0.08
0.02
1
2
3
2
3
1
1
1
2
3
0.03
0.02
0.45
0.20
0.15
0.02
0.03
0.01
0.16
0.06
Weaknesses
1. Investments in R&D are below the industry average
2. Very low or zero profit margins
3. Poor customer services
4. High employee turnover
5. High cost structure
6. Weak brand portfolio
7. Bureaucratic organizational culture
0.03
0.08
0.10
0.05
0.03
0.02
0.03
2
3
2
2
3
1
1
0.06
0.24
0.20
0.10
0.09
0.02
0.03
8. High debt level ($3 billion)
9. Brand dilution (the firm has too many brands)
10. Poor presence in the world's largest markets
0.03
0.01
0.12
1
1
2
0.03
0.01
0.24

Importance Probability Score
Opportunities
1. Market growth for the main firm's product
2. Growing demand for renewable energy
3. New technology is in development
4. Our country accession to EU
5. Changing customer habits
6. Disposable income level will increase
7. Government's incentives for 'specific' industry
8. Economy is expected to grow by 4% next year
9. Growing number of people buying online
10. Interest rates falling to 1%
0.10
0.01
0.13
0.05
0.05
0.02
0.03
0.01
0.08
0.02
2
1
1
3
1
3
2
2
3
3
0.20
0.01
0.13
0.15
0.05
0.06
0.06
0.02
0.24
0.06
Threats
1. Corporate tax may increase from 20% to 22% in 2013
2. Rising pay levels
3. Rising raw material prices
4. Intense competition
5. Market is expected to grow by only 1% next year
6. Increasing fuel prices
7. Aging population
8. Stricter laws regulating environment pollution
9. Lawsuits against the company
10. Currency fluctuations
0.12
0.03
0.09
0.07
0.05
0.01
0.01
0.01
0.02
0.09
2
2
3
1
3
3
3
1
1
2
0.24
0.06
0.27
0.07
0.15
0.03
0.03
0.01
0.02
0.18